Tesla to go private at $420

Since there are a number of TSLA shareholders who follow this board, and TSLA is a growth stock.

The following email was sent to Tesla employees today:

Earlier today, I announced that I’m considering taking Tesla private at a price of $420/share. I wanted to let you know my rationale for this, and why I think this is the best path forward.

First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best. As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.

I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we’re all trying to achieve.

This is especially true for a company like Tesla that has a long-term, forward-looking mission. SpaceX is a perfect example: it is far more operationally efficient, and that is largely due to the fact that it is privately held. This is not to say that it will make sense for Tesla to be private over the long-term. In the future, once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets.

Here’s what I envision being private would mean for all shareholders, including all of our employees.

First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). My hope is for all shareholders to remain, but if they prefer to be bought out, then this would enable that to happen at a nice premium.

Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.

Third, the intention is not to merge SpaceX and Tesla. They would continue to have separate ownership and governance structures. However, the structure envisioned for Tesla is similar in many ways to the SpaceX structure: external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months.

Finally, this has nothing to do with accumulating control for myself. I own about 20% of the company now, and I don’t envision that being substantially different after any deal is completed.

Basically, I’m trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible.

This proposal to go private would ultimately be finalized through a vote of our shareholders. If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us. Either way, the future is very bright and we’ll keep fighting to achieve our mission.




Nice letter.

Unwise (that’s the gentle word for it), IMO, to be saying “I’m thinking about it” instead of “This is what is going to happen”.

Introduces great uncertainty and potential for lawsuits based on accusations of stock manipulation.

Note: Disagreeing with Musk doesn’t make me a “short”. LOL

Rule Breaker / Market Pass Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.


Unwise (that’s the gentle word for it), IMO, to be saying “I’m thinking about it” instead of “This is what is going to happen”.

He can’t say it’s going to happen. That requires a shareholder vote.

He’s obviously more than just thought about it, claiming that financing is already setup, for instance.


If Musk is winging it, the securities fraud charge filed against him could break him and Space X and all he holds dare. I hope he did not just go crazy with it. Clearly he has intentionally moved the market with his tweets.

This said, Must also bought Solar City, taking on a ton of debt, while stating it would be cash flow accretive, only to see the reality that he bailed out his brother in law at the cost of shareholders.

At least in this manner, he only puts big banks at risk and shareholders get a good return. I can live with that, but hate to see Musk take such a risk with Tesla, and that could potentially roll into Space X. Debt is hell and more pressure than he ever faced with shareholders. Debt holders will be worse to work for.



Since there are a number of TSLA shareholders who follow this board, and TSLA is a growth stock.

Yep I am one that follows this board everyday. Sold all my NVDA, SHOP, SQ. LTCG by the way. Good year. TSLA which has been 60% of my port is the only keeper.

Thanks to the board.

Yet for the past 12 months TSLA has underperforned the stock market as a whole.

Ref: VTI (ETF)



My biggest question is what to do with the large proceeds from this?

Suggestions for new money to invest are welcome.


Can anyone tell me what Elon is talking about?

So if TSLA is the most shorted company in existence and it’s going to get bought out at a pretty high premium, does that mean the shorts are financing a large part of the buy out? Without even getting to participate in the shareholder vote… How sneaky!